International Business Management - Lecture No 01

1. International Business
Management
Course Facilitator: Khurshid Alam Swati
University of Swat, Swat
Email your query to:
Khurshidalamswati@yahoo.com
Lecture No: 01

2. Why Study Global
Business?

3. International
International – Inter--Nations
Exists, occurs, or carried
between/among nation(s)
While nation refers to a large body of
people united by common descent,
history, culture, or language, inhabiting
a particular state or territory
 Pakistani Nation, Chinese Nation

4. Business
An organization or economic system where
goods and services are exchanged for one
another or for money
An organization involved in the trade of
products, services, or both to consumers
A person's regular occupation, profession,
or trade
Also known as an enterprise or a firm
May be for profit, Non profit
Private or public owned or PPP

5. Management
The process of planning, organizing,
leading and controlling
Planning – What, when, why and by whom
Organizing – Arrangement of resources
 E.g. Financial and HR
Leading – Influencing, motivating and
attracting subordinates to achieve goals
Controlling – Responsibility, follow up and
feedback

6. International/Global Business
International Business is concerned with firms
that do not limit their operations to a single
nation or country
It is a business that operates all over the world
and; Treats the world as one country
International business is a large portion of total
business. And portion is rapidly growing due to
globalization
In the past 30 years, the volume of international
trade has expanded from $200 billion to over $7.5
trillion

7. Examples of Global Business
Coca-Cola
Toyota
McDonalds
Nike………………

8. International Business….
Locates in low wage countries – Labour
cost
Purchases raw materials from cheapest
country – Production cost
Borrows from cheapest country - Credit
Moves managers around the world –
Expatriation & Repatriation

9. Why study global business?
Increase understanding of global markets and
various regions of the world
To understand global economy – Exports, Imports,
BOP ($), BOT (Goods & Services) and Forex
To learn global cultures and societies
To increase sales and profit – due to home country
saturation
Possibility of extending product line, Diversification
 E.g. DOVE KSA, USA, Germany
To increase prestige of the product and the
organization
 E.g. International Brand
Minimize cost due to economies of scale